RICHMOND, Va., Sept. 17 /PRNewswire/ -- Crestar Financial Corporation (NYSE: CF) today announced a significant expansion of its Richmond area banking network with the signing of a definitive agreement to acquire the $756 million-asset Virginia Federal Savings from MNC Financial, Inc.
The acquisition of the Richmond-based Virginia Federal is expected to be completed by year-end. The purchase will initially add 13 offices to Crestar's banking network, including seven branches in the Richmond metropolitan area, as well as two offices in Charlottesville and one each in West Point, Orange, Waynesboro and Williamsburg. As a result of the acquisition, Crestar will have 55 branches in its Capital Region, which encompasses Richmond and surrounding counties, and 315 branches throughout Virginia, Washington and its Maryland suburbs.
The Virginia Federal transaction will bring to Crestar 32,000 households, $542 million in loans and $516 million in deposits. The acquisition also includes Virginia Federal's mortgage production business and $1 billion mortgage servicing portfolio which will be consolidated into those of Crestar's residential mortgage lending subsidiary, Crestar Mortgage Corporation. With originations of $2.5 billion in 1992, and a servicing portfolio of $6 billion, Crestar Mortgage Corporation is the largest Virginia-based residential mortgage lender.
Crestar will pay MNC Financial approximately $52 million in cash to acquire Virginia Federal. The sale of Virginia Federal is part of MNC's realignment of its operations in preparation for the completion of its previously announced merger into NationsBank.
"The acquisition of Virginia Federal, a profitable, well-capitalized institution, is a further demonstration of Crestar's continuing commitment to the local marketplace," said Robert F. Norfleet Jr., president of Crestar Bank's Capital Region. "We look forward to welcoming former Virginia Federal customers and to meeting all of their financial services needs with high quality service."
Upon completion of the acquisition, Virginia Federal branches and computer operations will be integrated into the Crestar systems. That process is expected to be completed by year-end. During the transition period, all Virginia Federal offices will be open during their regular business hours to serve their customers with no disruption in service.
Norfleet noted that Crestar expects to be able to provide employment for a large majority of Virginia Federal's 168 employees, either in the acquired Virginia Federal offices or in other parts of Crestar.
With $13.2 billion in assets, Crestar Financial Corporation is the holding company for three banks and other Crestar affiliates which provide insurance, brokerage, mortgage banking and investment advisory services.
-0- 9/17/93
/CONTACT: Barry R. Koling, corporate communications, Crestar Financial, 804-782-7845/
(CF)

CO: Crestar Financial Corporation; Virginia Federal Savings; MNC

Financial ST: Virginia IN: FIN SU: TNM

DT-DC -- DC030 -- 3190 09/17/93 15:57 EDT

COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.